Which of the following is not a way that a firm can increase its dividend?
A) By increasing its retention rate
B) By decreasing its shares outstanding
C) By increasing its earnings (net income)
D) By increasing its dividend payout rate

Question

Quizplus · Accepted Answer

Increasing the retention rate means the firm is keeping more of its earnings rather than distributing them as dividends, which would not increase the dividend.

Which of the Following Is Not a Way That a Firm